Yen Flatlines as Trump Raises Concerns Over Weak Currency

Japan's Ministry of Finance reported on Wednesday that it had purchased an undisclosed amount of Yen between August 27 and September 28, which could indicate whether the rate check reported on September 18 turned into real money. The USD/JPY pair closed just under 157.50 on Monday after a flat session.

The pair dipped to 156.50 during the day but recovered. A week of Japanese warnings did not have as much impact as one reported sentence from Washington. Finance Minister Katayama said that President Trump raised concerns about the Yen's weakness at their New York summit with Prime Minister Takaichi on Tuesday.

Takaichi confirmed that he told Trump the weak currency was making trade difficult for the US, and Katayama added that further joint intervention with the US had not been ruled out. Japan and the US bought Yen together in late July, so a US president on the record makes another joint operation easier to believe.

Tokyo core inflation is forecast to cross the BoJ's target, while Japan's quarterly Tankan survey on Wednesday showed the large manufacturers' index at 25, up from 22. The Bank of Japan raised its policy rate to 1.25% on September 18, and Tokyo's Consumer Price Index (CPI) for September follows on Thursday.